DATE: June 18, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: RESOLUTION APPROVING A VESTING TENTATIVE MAP (T24-00001), DEVELOPMENT PLAN (D24-00008), AND DENSITY BONUS (DB24-00002) FOR A 40-LOT SUBDIVISION (35 RESIDENTIAL LOTS AND 5 LETTERED LOTS FOR OPEN SPACE AND PRIVATE ROAD) AND CONSTRUCTION OF 35 DETACHED SINGLE-FAMILY HOMES, INCLUDING SIX HOMES SET ASIDE AS AFFORDABLE UNITS, AND ASSOCIATED SITE IMPROVEMENTS ON A VACANT 4.05-ACRE PARCEL LOCATED ON THE SOUTH SIDE OF KELLY STREET BETWEEN HUNSAKER STREET AND ANDY LANE (APN:154-170-78) (KELLY STREET/LAGOON PACIFIC PROJECT) APPLICANT: OCEANSIDE COMMUNITY PARTNERS, LLC
RECOMMENDATION
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Staff recommends that the City Council adopt a resolution approving a Vesting Tentative Map (T24-00001), Development Plan (D24-00008), and Density Bonus (DB24-00002) and confirm issuance of a Categorical Exemption per California Environmental Quality Act (CEQA) Guidelines Article 19, Section 15332 (In-Fill Development Projects) to allow for a 40-lot subdivision and construction of 35 detached single-family homes, including six affordable units, on a vacant 4.05-parcel located on the south side of Kelly Street between Hunsaker Street and Andy Lane.
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BACKGROUND AND ANALYSIS
The project site is comprised of a vacant 4.05-acre parcel located on the south side of Kelly Street, between Hunsaker Street and Andy Lane. Surrounding land uses consist of single-family residential development to the north, the North Coast United Methodist Church to the west, the SR-78 highway to the south, and Pacific Coast Plaza commercial center to the east. The property has a General Plan land use designation of Estate Residential B (EB-R), a Zoning Designation of Residential Estate B (RE-B), and is within the Fire Mountain Neighborhood Planning Area. The project site (outlined in red) and surrounding area are depicted in Figure 1 below:
Figure 1: Project Location
Proposed Project
The project application is comprised of a Vesting Tentative Map, Development Plan, and Density Bonus to allow the subdivision of an existing legal parcel and construction of 35 detached single-family homes, with six of the units set aside as affordable units pursuant to State Density Bonus Law (SDBL).
Vesting Tentative Map (T24-00001) represents a request to subdivide a 4.05-acre parcel into 35 single-family residential lots and five lettered lots (for common open space areas and a private internal roadway). As illustrated in Figure 2 below, the private road would provide access to each residential lot and connect to Kelly Street on the north side of the project site. Although private, the new roadway would contain easements for public sewer, general utilities, and City emergency vehicle access.
The residential lots are located along the proposed private street that runs throughout the project site. At 32 to 57 feet in width, the lots range in size from 1,959 to 4,740 square feet. Common area open space lots would be located at the northeast and southeast corners of the property, accessible from the private road.
Figure 2: Tentative Map
Development Plan (D24-00008) represents a request to allow the construction of 35 single-family residences and associated improvements including common open space and recreational areas, landscaping, private roadway, pedestrian pathways, and on-site storm drain facilities on a vacant 4.05-acre parcel.
The detached single-family homes are designed as two and three-story residences with attached two-car garages. Three different floor plans are provided and multiple elevation and color scheme options create a diverse street scene for the project. The homes would range in size from approximately 1,794 to 2,360 square feet with four bedrooms, some of which include a loft, and 2.5 to 3.5 bathrooms. The three-story residences would have a maximum height of 36 feet while the two-story residences would not exceed 28 feet in height. All the residences include street-facing front entries set back from the front facade and are situated to provide varying front setbacks and articulation to enhance variation between the homes. Each residence features rear yard areas to provide private open space.
Site Plan: The project has been designed with the proposed single-family homes situated along a private drive with direct driveway access to each lot. There are no residential lots fronting Kelly Street. The five homes proposed closest to Kelly Street would be situated adjacent to four existing homes that front on Kelly Street. Each of these new homes would be two stories high with a maximum height of 28 feet in order to reduce the project's visual impacts upon the existing residences.
The proposed project includes a combination of retaining and CMU walls along the perimeter of the site. The southern portion of the project site abuts a 20 to 30-foot slope descending down to Highway 78. The building pad for this portion of the site would be raised three feet at the southerly boundary adjacent to Highway 78 and a five-foot six-inch (5'6") decorative block wall would be constructed along the property line. Vinyl fencing materials are proposed for the private yards and steel fencing is proposed along the open space areas. An existing seven-foot tall property line wall located on the eastern portion of the site would be protected in place. Due to the topography of the site, a waiver has been requested to increase the allowable wall height to a maximum height of eight feet.
Pedestrians would be able to access the subdivision off of Kelly Street by way of a pedestrian walkway that includes enhanced paving and a decorative arbor located at the entrance. The walkway would traverse through the project site and connect to the recreational and natural open space areas within the subdivision, which would include a passive park. Usable common open space areas within the subdivision total 15,669 square feet. A detailed Site Plan for the project is appended to the Planning Commission Staff Report (Attachment 3).
Figure 3: Site Plan
The proposed project has been designed to incorporate new trees along the perimeter of the site boundary to help screen the new homes from the existing residences along Kelly Street. In total, 58 new trees would be planted onsite with an emphasis on placing the new trees along the pedestrian and vehicular access points as well as adjacent to neighboring residential properties. The project would provide a tree canopy of approximately 16 percent, thereby exceeding the City's minimum tree canopy requirement (12 percent) for the project site. All proposed landscaping would be consistent with the City's Landscape Design Manual and approved tree list. The Conceptual Landscape Plan (CLP) prepared for the project has been reviewed and approved by the City's Landscape Architect.
Vehicle Circulation and Parking: Primary vehicular access to the site would utilize a new driveway off of Kelly Street. The private road, which has been reviewed and approved by the City's Transportation Engineering staff, would be a minimum width of 28 feet, with the exception of the portion of roadway fronting Lots 34 and 35 which is designed at a minimum width of 21 feet. The site design was also reviewed and approved by the Fire Department staff and it was determined that the site would adequately accommodate fire apparatus trucks and other service vehicles.
Each home would have a garage with parking for two vehicles. Furthermore, the project has been conditioned to require that garages be used for parking of vehicles and shall not be used for storage. A Homeowner's Association will be formed to enforce this provision through Covenants, Conditions, and Restrictions (CC&Rs). In addition to garage spaces, 29 homes would have driveways that could accommodate two additional vehicles. As such, each of these homes would have the capacity to provide parking for at least four vehicles at a given time. Additionally, 18 guest parking stalls would be provided on-site. In total, the proposed project would provide 146 parking spaces (including garage, driveway, and guest parking spaces) resulting in an average of 4.17 parking spaces per unit.
Architecture: The proposed architecture is described as modern farmhouse and features a variety of exterior materials including stucco and wood siding, asphalt shingle roofing, metal railings, and vinyl windows. As illustrated in Figure 4, the homes would be painted in various shades of gray and earth tone colors and accentuated with decorative shutters, stone and brick veneers, and lap siding.
Figure 4: Architecture
Density Bonus (DB24-00002) represents a request to develop increased density (35 units) from the maximum potential density allowed on the project site (18 units) in exchange for providing six affordable units (three reserved for very low-income and three reserved for moderate-income households). Effective January 1, 2024, Assembly Bill (AB) 1287 gives developers the option to incorporate significant additional density into eligible SDBL projects. The law creates a new "stackable density bonus" specifically designed to facilitate construction of middle-income housing and additional very low-income housing, and represents developers' first opportunity to receive density bonus for moderate income rental units. The proposed project would be the first in Oceanside to invoke AB 1287.
The project site has a land use designation of EB-R which establishes a density range of 1.0 to 3.5 dwelling units per gross acre. However, because the project site has a corresponding zoning designation of RE-B and is within the Fire Mountain Neighborhood Planning Area, it is subject to Policy 1.13 of the General Plan Land Use Element which states:
For lands within the Loma Alta, Fire Mountain, and South Oceanside Neighborhood Planning Areas that are designated Estate 8 (1-3.5 selling unit/acre) and with the corresponding zoning of RE-8, a minimum lot size of 10,000 square feet as defined in the Zoning ordinance shall be considered consistent with the underlying Land Use designation of Estate B Residential.
Therefore, the project site has a maximum potential density of 4.35 dwelling units per acre. Multiplying the parcel acreage (4.05 acres) x 4.35 (maximum potential density) = 17.61 dwelling units. Pursuant to SDBL, the number of units is rounded up so the total of allowable units on the project site is 18 units.
Pursuant to AB 1287, the proposed project would be entitled to a 100 percent density bonus as it would provide 15 percent of the total allowable units (three units) to very low-income households and 15 percent (three units) to moderate-income households. The table below provides a breakdown of the density bonus calculation pursuant to AB 1287.
Table 1: Density Bonus Calculation
STEP 1:
Calculate Base Allowable Density
At this site the Land Use Element designates a density range with a minimum lot size of 10,000 square feet for the RE-B zone which corresponds to a maximum of 4.35 units per acre.
Under SDBL the base number of units permitted is determined by multiplying the gross site acreage by the applicable maximum density for the specific zoning range and land use element of the general plan applicable to the project area.
RE-B: 4.05 acres x 4.35 dwelling units per acre = 17.6 units
Total rounded up to 18 units as designated base
STEP 2:
Determine Affordability Percentage and Units
The project proposes to provide 15% of the units as affordable to very low-income households and 15% as affordable to moderate-income households. Under SDBL, specifically AB 1287, the project is entitled to a 100% density bonus.
15% x 18 units (base allowable) = 2.7 units; rounds up to 3 units Very Low-Income
15% x 18 units (base allowable) = 2.7 units; rounds up to 3 units Moderate-Income
STEP 3:
Calculate Density Bonus Units
Under SDBL, specifically AB 1287, the provision of 15% very low-income units and 15% moderate-income units allows the applicant to receive a 100% density bonus, allowing additional market-rate units to be constructed.
18 units x 1.0 (100% density bonus) = 18 units
STEP 4:
Calculate Total Dwelling Units
Add the base allowable units and the density bonus units.
18 units (base allowable units) + 18 units (density bonus units) = 36 total units allowed (29 market rate + 6 affordable units)
Resulting Overall Project Density on 4.05 acres = 8.64 du/ac
SDBL entitles projects to certain incentives or concessions and also provides for waivers from development standards that would physically preclude the project at the density proposed. The granting of waivers does not reduce the number of incentives allowed on a project, and the number of waivers that may be requested and granted is unlimited. In accordance with SDBL, a City cannot deny or condition the project or otherwise deny a requested incentive/concession or waiver unless findings are made that a "specific adverse impact" which is defined as "a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete" that cannot otherwise be mitigated.
The applicant has not requested any incentives or concessions for the proposed project. In order to accommodate the project as proposed and as allowed under SDBL, the project cannot physically comply with all applicable development standards for the Residential Estate B (RE-B) Zone. The applicant has thus requested waivers from the following development standards pursuant to State Law:
1. Lot size
2. Lot width
3. Setbacks
4. Lot coverage
5. Maximum height of fences/walls
6. Minimum dimension of usable open space
The following table is provided to illustrate the development standards applicable to the project and to identify the standards proposed to be waived as a part of the Density Bonus application:
Table 2: Development Standards
DEVELOPMENT
STANDARD
RE-B ZONE
REQUIREMENTS
PROPOSED KELLY ST. PROJECT
NOTES
Density
4.35 du/acre
8.64 du/acre
Density Bonus allowed per SDBL* AB 1287
Lot Size
10,000 sf min
1,955 - 3,134 sf
Waiver Requested
Lot Width
70 ft. min
28.8 - 48 ft
Waiver Requested
Setbacks:
Front
Side
Corner Side
Rear
25 ft. min
7.5 ft. min
15 ft. min
20 ft. min
2.5 - 21 ft.
4 ft.
5 ft.
7 - 27 ft.
Waiver Requested
Building Height
36 ft. max.
36 feet
Complies
Lot Coverage
35% max
35% - 60%
Waiver Requested
Parking
2-car garage per SF home
2-car garage per SF home
Complies
Garage Dimensions
20' wide by 19' deep min.
20' wide by 19' deep min.
Complies
Landscaping
Min. 50% of yard adjoining street shall be planting; remainder may be used for driveways or walks
Min. 50% of yard adjoining street will be planting
Complies
Fences and Walls
Max. height 6 ft.
Max. height 8 ft
Waiver Requested
Mechanical Equipment Screening
All equipment screened from street view
Ground mounted equipment will not be seen from the street
Complies
Renewable Energy Facilities
Solar Photovoltaic Systems per Calif. Energy Code and Calif. Green Building Standards Code
Solar Photovoltaic to be installed
Complies
Urban Forestry
Min. 12% Tree Canopy
Min. 22% Permeable Surface Area
Landscape & Tree Canopy Mgmt. Plan
15.7% provided
45% provided
LTCMP submitted
Complies
Underground Utilities
Electrical, telephone, CATV and misc. lines to be undergrounded
All utilities will be removed or undergrounded
Complies
Vehicular Access
Driveway 16 ft. wide
18 ft. wide for 2-car garages
Complies
Usable Open Space
300 sf / unit
Min. 15 ft. dimension within rectangle
2,038 sf / unit
7 ft. min. dimension
Complies
Waiver Requested
*SDBL: State Density Bonus Law
The proposed project has been reviewed for compliance with the General Plan, Zoning Ordinance, Subdivision Ordinance, and the California Environmental Quality Act (CEQA). A detailed analysis of the proposed project's compliance with such policy documents is contained in the Planning Commission staff report which is appended to this staff report (Attachment 3).
In accordance with City policy, the applicant prepared a Local Transportation Assessment (LTA). As detailed in the LTA (Attachment 4), the proposed project would generate approximately 339 daily trips, 25 AM peak hour trips, and 34 PM peak hour trips. The LTA also includes an assessment of the adjacent intersections of Hunsaker Street/Cassidy Street, Soto Street/Cassidy Street, Interstate 5 (I-5)/Cassidy, Stewart Street/Cassidy Street, and Hunsaker Street/Kelly Street and an assessment of the roadway segments of Kelly Street, between Soto Street and Andy Lane and Soto Street, south of Cassidy Street, west of Soto Street. The analysis conducted for the LTA states the intersections would continue to operate at acceptable Level of Service D or better with the proposed project and the roadway segments would continue to operate at an acceptable Level of Service C or better with the proposed project.
FISCAL IMPACT
No fiscal impact.
COMMISSION OR COMMITTEE REPORT
The Planning Commission considered the proposed project at its regular meeting on May 19, 2025. During the public hearing, the Planning Commission received testimony from the applicant and the public. Primary concerns raised by the public included the proposed density, incompatibility with the existing neighborhood, the number of waivers requested for the project, the proposed lot sizes, overflow of parked vehicles into adjacent neighborhoods, reduced property values, impacts to habitat/natural areas, and increased traffic.
After due consideration, the Planning Commission voted 6-1 (Commissioner Dodds - no; all Commissioners present) to recommend City Council approval of the proposed project by adopting Resolution No. 2025-P11.
Following the Planning Commission meeting, the applicant agreed to a Transportation Condition of Approval to install an all-way stop at the intersection of Cassidy Street and Soto Street. This additional Condition of Approval has been added to the City Council Resolution (Attachment 2). The Planning Commission staff report, which includes additional project details, is attached to this report.
CITY ATTORNEY'S ANALYSIS
The City Council is authorized to hold a public hearing on this matter. Consideration of the matter should be based on the testimony and evidence presented at the hearing. The supporting documents have been reviewed and approved as to form by the City Attorney.
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Prepared by: Shannon Vitale, Senior Planner
Reviewed by: Darlene Nicandro, Development Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. City Council Resolution (including Planning Commission Resolution No. 2025-P11)
3. Planning Commission Staff Report Packet from May 19, 2025
4. Local Transportation Assessment
5. Public Correspondence